This is a Sample Paragrapah, Over Bidding: Over-bidding with FHA Financing – If the purchaser is obtaining FHA financing, your buyer will be required to use HUD’s FHA “AS-IS” appraisal. Therefore, if the purchaser overbids the appraised value and is obtaining FHA financing, the purchaser must pay the overbid difference in cash. This is because FHA will not insure a loan greater than the appraised value of the property. Buyers who overbid and cancel due to not having the financial means to cover the overage will forfeit their earnest money to HUD.
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